Prefer Hero Moto over Bajaj Auto: Phani Sekhar

P Phani Sekhar of Karvy Stock Broking told CNBC-TV18, "That entire auto space is much better play on interest rates going down although it has taken some kind of a sentimental hit if you can use that word since RBI really put a dampener. Having said that to me two-wheelers certainly looks pretty good commercial vehicles is high beta call that one can look at but two-wheelers is a relatively safer bet because both Bajaj Auto and Hero Motocorp, especially Hero is looking pretty attractive. After the correction that took place which was completely due to non business reasons."

Disclosure: We hold Hero Motocorp in our portfolios.

"I am preferring Hero over Bajaj but in the sector Bajaj also can qualify to be an interesting buy because if you are assuming a10 percent volume growth in the domestic market and expect Bajaj not to lose any more market share and thankfully they have gained market share in the sub 125 CC segment although very marginally. If that were to happen from a valuation perspective at least bottom seems to be in place in Bajaj," he said.